Jensen Huang Backs CoreWeave: Financial Condition Continues to Improve, No Need for Nvidia to Provide Guarantees

Odaily News: Nvidia CEO Jensen Huang stated that data center operator CoreWeave's financial condition is improving. Nvidia is CoreWeave's computing equipment supplier. Speaking at an event in Stockholm, Huang said: "CoreWeave's strength is growing every day." He believes there is no need for Nvidia to provide financial guarantees for CoreWeave. "I am optimistic. In fact, their cost of capital is declining."

Previously, confidence in CoreWeave in the credit market had deteriorated, with concerns that its default risk was rising, and Huang is seeking to restore market confidence in the company. CoreWeave is an important case for testing the sustainability of the business models of emerging AI infrastructure companies. These companies have emerged to meet what companies like Nvidia describe as nearly unlimited growth in AI computing demand. Companies such as CoreWeave have borrowed heavily with the support of suppliers including Nvidia, raising market concerns about circular financing creating artificial demand.